Portugal and the North: European Funds for a New Europe

Agriculture and Sea Minister José Manuel Fernandes closed the conference “The North 40 Years On: What Europe Do We Want to Build?”, held on Saturday by the Northern Regional Coordination and Development Commission, stressing that Portugal must be the “designer” of European funds.

Over four decades of Portugal’s membership of the European Union (EU), the North has seen its working population rise from 44% to more than 51%, while services have doubled their share of the economy. Industry has modernised and remains competitive, and higher-education attainment has surged from 1% to 30% of the population. Illiteracy has fallen sharply, from 26% to 3%, while infant mortality dropped from 18% to 2%. The region’s Gross Value Added has increased from €6.6 billion to €74 billion.

With Trump now in the US presidency and wars continuing in Ukraine and the Middle East, a new cycle is beginning. After the era of infrastructure and knowledge, fresh and more demanding challenges lie ahead. The North wants to retain a strong voice and met on Saturday at the Santo Thyrso Factory to map out the future at the conference “The North 40 Years On: What Europe Do We Want to Build?”, organised by the Northern Regional Coordination and Development Commission (CCDR-N).

“Portugal cannot be the user. It has to be the designer of European funds,” said Agriculture and Sea Minister José Manuel Fernandes, adding that it was necessary to “finally put an end to the myth that Portugal is a small country”.

He argued that Europe must become more proactive rather than simply responding to events. “We needed the energy union that we do not have, as well as digital, cybersecurity, defence and capital-markets union. Studies say that if we had that union, our gain would be 10% of EU GDP a year. That would be equivalent to one multiannual financial framework every year! These are national self-interests that we must overcome,” the minister noted.

“We need an open Europe, where strategic autonomy cannot be confused with protectionism. A Europe with less regulation and faster decision-making,” José Manuel Fernandes

Looking back over the past 40 years, Santo Tirso Mayor Alberto Costa recalled what this period had brought, saying that the Santo Thyrso Factory itself - now a cultural and creative hub for the fashion sector - reflected “innovation, competitiveness and infrastructure”.

Role of local authorities

Joining the then EEC “was not merely an economic agreement. It was a strategic choice, and that decision changed the country,” emphasised CCDR-N President Álvaro Santos. He highlighted the essential contribution of local authorities: “it was the municipalities that were at the forefront of delivering public policies, that knew how to mobilise European funds, and that turned resources into tangible projects, quality of life and local closeness”.

“It was the municipalities that ensured Europe reached real places, so we must continue to trust local government, strengthen its capacity and recognise its irreplaceable role in European construction,” Álvaro Santos

From Porto Metro to the Marão Tunnel, from the hospitals in Gaia and Matosinhos to the Leixões Cruise Terminal, and through investments such as Bosch, industrial estates and urban regeneration in several municipalities, European funds have transformed the country’s face and, above all, as European Parliament member Francisco Assis pointed out, Portugal’s perception of itself.

A new cycle is now approaching. Álvaro Santos said the North is ready and intends to be one of the engines of the “new” Europe: a leader in industry, a knowledge hub able to attract talent, and a testing ground for solutions to the green transition.

Regions deciding the future

European affairs consultant Henrique Burnay said the changes ahead would be vast. Consensus would need to be found and concessions made and, as a result, “there will always be pain”. Portugal “will have to adapt to the new reality of European funds”. Across Europe, maintaining the welfare state appears to be the central challenge.

Guimarães Mayor Ricardo Araújo and Bragança Mayor Isabel Ferreira want regions to be heard in decision-making processes. European Parliament member Paulo Cunha said there must be less municipal individualism and more regional projects.